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State of Rajasthan & Others vs O.P. Gupta

Diary No. · 2022 INSC 980Decided 19 Sept 2022
Diary No. 27824 of 2020
Indira Banerjee · J.K. Maheshwari

Background

O.P. Gupta began service in 1967 with the Rajasthan Agriculture Engineering Board, which was later merged into the Rajasthan State Agro Industry Corporation. In 1977, after being selected through the Rajasthan Public Service Commission, he resigned from the Corporation to join as Assistant Director in the State's Department of Industries, where he eventually retired in 2003. When calculating his pension, the State refused to count his 1967-1977 tenure with the Board/Corporation, treating his resignation as forfeiting that past service. Gupta's writ petition challenging this was allowed by the High Court (both by a Single Judge and, on appeal, a Division Bench), prompting the State to approach the Supreme Court.

Decision Breakdown

The Supreme Court examined Rule 25 of the Rajasthan Civil Services (Pension) Rules, 1996, which states that resignation ordinarily forfeits past service, but carves out an exception where the resignation was submitted, with proper permission, to take up another government appointment. Since Gupta had resigned from one State-controlled entity to join another government post after being selected via the RPSC, the Court held his case fell squarely within that exception, and it was reasonable to presume proper permission was obtained given the long, unbroken chain of government service. The Court found the concurrent factual findings of both the Single Judge and Division Bench did not warrant interference under Article 136, and noted that pension is a continuing right and financial/pension rules should be interpreted in favour of the employee where more than one interpretation is possible. The petition was dismissed.

Lesson Learnt

A government employee's resignation from one government post to take up another, with proper permission, does not forfeit earlier pensionable service, and courts will lean toward interpreting pension rules in the employee's favour when the wording allows more than one reading.

Official source (sci.gov.in)View Judgment (PDF)

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